Here's an in interesting tidbit i found regarding fort knox and where the Citizens of USA's God really went.

In the 1970's a very courageous gentleman named Edward Durrell claimed that substantially all of the US Gold Reserve being stored at Ft. Knox was gone. Only 1,000 tonnes or so of the 8,500 tonnes supposedly being stored there remained. The rest had been secretly taken from Ft. Knox and shipped to London in 1967 and early 1968 for sale by President Johnson in an ill-fated attempt to keep the price of Gold at $35 per ounce.

Mr. Durrell provided a lot of anecdotal evidence to support his claim. These included eyewitness accounts of hundreds of Army trucks leaving Ft. Knox in the middle of the night over a period of many weeks, supposedly loaded with the Gold bounty. Other interesting but circumstantial evidence was the sudden and unexpected dismissal of Gordon Tether, business editor for London's Financial Times, who published Mr. Durrell's claims. To my knowledge, no mainstream US newspaper dared to publish Mr. Durrell's allegations.

Gold is still hitting new highs, reaching $1,641 an ounce this morning on the Comex in New York. Although the debt ceiling seems like an obvious culprit, there’s been a lot of other data out there boosting gold’s price.

First, U.S. GDP estimates for the second quarter came in at 1.3 percent. That’s a pretty weak number. For a mature economy like the United States, GDP growth needs to be consistently around 4 to 5 percent in order to keep the economy at full employment and production capacity.

Meanwhile, the first quarter GDP numbers were revised down from 1.9 percent to 0.4 percent. That’s an 80 percent reduction from what was calculated last quarter.

The real economy is showing no real signs of growth, and that includes a time period that included some major easing by the Fed. It will also likely get worse before it gets better. Next quarter’s numbers will be affected by a slowdown in government spending tied to the debt ceiling drama.

Manufacturing numbers continue to show a slowdown, as does the rise in unemployment numbers (with a big bump in new jobless expected in figures to be released later this week).

Other governments are taking the hint that the United States can’t get its fiscal house in order. They’re moving to gold. South Korea’s central bank has bought over $1 billion of gold to boost its reserves in recent months. That’s given the bank a 17-fold boost in its gold holdings! Also in the past few months, the central bank of Thailand has increased its gold reserves 15.5 percent.

That said, we could still see some big down moves in gold following its rise. For example, gold briefly sold off on Monday morning on the announcement that the House would pass legislation to resolve the debt ceiling, only to climb higher on poor manufacturing data. I’m still staying cautious on gold. After all, the summer is usually gold’s weak season, and gold prices can be quite volatile.